The Association of British Insurers (ABI) has released its latest travel insurance claims report for 2023, revealing a substantial increase in both the volume and value of claims processed over the past year. Insurers handled a total of 574,000 travel insurance claims, with payouts aggregating to £511 million.
Spain emerged as a significant focus, with approximately 29,000 claims related to trips to the country, resulting in £41.7 million in payouts. This underscores Spain’s status as a favored destination for British travelers.
The ABI report also highlights a notable correlation between claim amounts and the age of policyholders. Individuals aged 36 to 40 submitted claims with an average value of £518, whereas those aged 71 to 75 had claims averaging £1,830. This age-related trend is also reflected in the cost of insurance premiums, with single trip policies priced at £38 for younger travelers and escalating to £190 for older individuals.
Medical expenses dominated the claims landscape, with a total of £291 million allocated to medical claims in 2023. The average medical claim stood at £1,724, although this figure can vary widely based on individual circumstances. A particularly striking case involved an ABI member covering £25,000 for repatriation and medical treatment of a traveler injured in a forest fire.
Lucie Hart, ABI policy adviser, emphasized the importance of travel insurance, stating, “No one wants to think of anything ruining their holiday, but falling ill could lead to significant financial consequences.” Hart continued, “Travel insurance should be an essential part of your travel preparations. Ensuring comprehensive coverage is crucial to avoid costly issues should unexpected problems arise.”
Hart also cautioned against common mistakes such as failing to disclose pre-existing medical conditions or purchasing insurance after the start of a trip, which can potentially invalidate the policy.
